JAKARTA, NETRALNEWS.COM - Based on the results of research by PT Bahana Sekuritas, PT Danareksa Sekuritas and PT Mandiri Sekuritas as underwriters of Initial Public Offering (IPO) for PT PP Presisi Tbk (Perseroan)'s shares, the nation's largest civil construction and building company in Indonesia is expected to post net profit margin of 8 to 10 percent in 2017.
This achievement is the highest when compared with average of other construction companies which is about four to seven percent. This is in line with the estimated net profit PP Presisi will achieve between IDR132 and IDR182 billion by the end of 2017, an increase of 220 percent compared to the same period in 2016.
The subsidiary of PT Pembangunan Perumahan (Persero) Tbk (PTPP.JK) has a portfolio of projects spread throughout Indonesia and has the competence of civil construction works and building structures with international standards.
"PT PP (Persero) Tbk, PT Wijaya Karya (Persero) Tbk (WIKA.JK), and PT Adhi Karya (Persero) Tbk (ADHI.JK) are large-scale construction companies undertaking project management. Dirty works jobs in the field like cut and fill, maturation of the land, installation of the foundation, and the concretion is done by PP Presisi," said Benny Pidakso, Finance Director of PP Presisi, in Jakarta, Thursday (11/23/2017).
According to him, civil construction works and building structures contribute about 80 percent to the company's revenue.
The three state-owned securities firms also estimate PP Presisi's net profit margin to remain above 10 percent by 2018. The company's strong net profit performance is supported by revenues expected to reach IDR1.6 trillion in 2017, a growth of 340 percent over the same period last year.
PP Presisi is targeting a new contract of around IDR5 trillion from projects, such as toll roads, bridges, piers, airports, buildings, civil works and building structures. As of July 31, 2017, PP Presisi has obtained a new contract of IDR2.5 trillion. Coupled with carry over last year amounting to IDR4.9 trillion, it means that PP Presisi is working on a project worth a total of IDR10 trillion.